Nuclear concerns 'scare the market like crazy'; Ally, Citi top most-active list; DuPont dips

By Stephanie N. Rotondo

Portland, Ore., March 16 - Japan's nuclear concerns remained the focus during Wednesday trading, further depressing the preferred stock market, a market source said.

"It was one of the deadest days of the year," he said.

Part of the problem, he said, was comments made by Guenther Oettinger, the European Union's energy chief.

"It scared the market like crazy," he said.

Oettinger told an E.U. parliament committee that Japan's nuclear reactors were "out of control."

"In the coming hours, there could be further catastrophic events which could pose a threat to the lives of people on the island," Oettinger said.

"His choice of words was quite inflammatory," the market source said. "You'd think in the public sector you would be more tactful."

While Oettinger went on to say that there was "as yet no panic," the comments - as well as the stories pouring out of Japan - resulted in investors being "largely focused on the whole possibly budding nuclear disaster."

As such, the source said it was "not a great scene" and that his screen was reading more red than green.

"Today was obviously a rough day, with equities down 242 points," said another trader. "While there was some weakness in the preferred market, particularly in benchmark names, there wasn't any evidence of panic selling and very little real money selling."

Ally Financial Inc.'s GMAC Capital Trust I hybrid trust preferreds again topped the most-active list, with Citigroup Inc. following closely behind. Both companies saw their respective preferreds softening in line with the market.

Also, DuPont Fabros Technology Inc.'s recent deal ended the day weaker.

Ally, Citi top trading

Ally Financial's GMAC Capital Trust I 8.175% hybrid trust preferreds were deemed the day's most-active preferred issue despite their lower price point.

A source said the trust preferreds fell to $25.21 bid.

Citigroup's series N and J preferreds were also softer at $26.94 and $26.55, respectively.

Another trader placed Citi's N preferreds at $26.95 and the J preferreds at $26.56.

The second trader also saw Bank of America Corp.'s series H preferreds trading actively at $26.07 and Barclays plc's series D preferreds at $25.69.

DuPont's new issue softens

DuPont Fabros Technology's 7.875% series B preferreds were called "generally softer," closing at $24.75, a source said.

The preferreds experienced their high at the open, the source added, when they were trading at $24.95.

"So that's down a bunch," he said.

The Washington, D.C.-based real estate investment trust priced the issue on March 8, selling 3.6 million preferreds at par of $25.00.

On Monday, the company said its over-allotment option was partially exercised, resulting in the sale of an additional 450,000 preferreds.

All told, the company raised $101.25 million in the offering.

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